The Indiana Office
of Utility Consumer Counselor (OUCC) is inviting customers of Indiana
American Water Company (IAWC) to attend a public field hearing of the
Indiana Utility Regulatory Commission (IURC) to comment on IAWC’s proposed
16-percent rate increase.

The field hearing
is scheduled for 6 p.m. Monday, Nov. 26, in the Gary City Hall Common
Council Chambers, 401 Broadway in Gary.

* Consumers will be
able to speak directly to the IURC, under oath and on the record, regarding
the case.

* Consumers will
also be able to submit written comments for the case record.

* Commissioners are
not allowed to answer questions during the field hearing. However, OUCC
staff will be available before, during, and after each hearing to address
questions about the process.

The OUCC needs to
receive all written consumer comments no later than Dec. 14, so that it can
consider them in preparing its testimony and file them with the IURC to be
included in the case’s formal evidentiary record.

Comments should
include the consumer’s name, mailing address, and a reference to “IURC Cause
No. 45142.” Consumers with questions about submitting written comments can
contact the OUCC’s consumer services staff toll-free at (888) 441-2494.
Please do not include account numbers or other sensitive information.

The OUCC, the state
agency representing consumer interests in cases before the IURC, is using
its legal and technical resources to review IAWC’s request and is scheduled
to file testimony on Dec. 21.

An IURC order is
expected during the first half of 2019.

Proposed Rate
Increase

IAWC’s proposal
would raise rates in two phases, increasing its total annual operating
revenues by $38.8 million. For most residential customers using 5,000
gallons per month, the monthly bill would rise from $43.70 to $46.81 in July
2019; and then to $50.34 in July 2020.

These amounts
include fire protection surcharges.

Within the rates,
IAWC’s proposal would raise the flat monthly residential customer charge
from $14.23 to $20.17 in 2019; and then to $22.35 in 2020.

“IAWC, which
provides service to approximately 302,000 customers in more than 50 Indiana
communities, is a wholly owned subsidiary of Voorhees, New Jersey-based
American Water Inc.,” the OUCC said. “In its testimony and exhibits, IAWC
attributes the requested rate increase to numerous infrastructure
investments, including the replacement of aging water distribution lines
throughout its service territories.”

“Current base rates
for IAWC received IURC approval in January 2015,” the OUCC noted. “However,
rates have increased three times since then through the utility’s
Distribution System Infrastructure Charge (DSIC), a rate tracker (or
adjustment mechanism) that allows investor-owned water utilities to increase
rates to pay for aging infrastructure subject to OUCC review and IURC
approval within extremely short timeframes. IAWC’s most recent DSIC
increases were approved in May 2016, March 2017, and March 2018. In October
2018, IAWC’s rates were reduced due to federal tax law changes under the Tax
Cuts and Jobs Act of 2017.”